TIDMIOF
RNS Number : 5130V
Iofina PLC
15 April 2021
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018
("MAR"), and is disclosed in accordance with the company's
obligations under Article 17 of MAR.
15 April 2021
Iofina plc
("Iofina", the "Company" or the "Group")
(LSE AIM: IOF)
Q1 2021 Update
Record Q1 Sales, Iodine Market Recovering
Iofina plc, specialists in the exploration and production of
iodine and manufacturers of specialty chemical products, today
provides an update to the market regarding its activities during
the first quarter of 2021 ("Q1" or the "Period").
Highlights
-- Strong recovery in the iodine market with sales demand at pre-pandemic levels
-- Backlog of deferred orders processed pushed sales for the quarter to record levels
-- Global iodine spot prices are increasing and Q2 prices are expected in the $34-$37 range
-- Production of 108.2 MT of crystalline iodine (2020: 129.7 MT)
-- Decrease compared to Q1 2020 largely due to abnormal extreme
weather for two weeks in February
During the Period, the Company achieved record sales of iodine
and specialty chemicals, as a result of a significant recovery in
demand in the iodine market combined with the availability of
crystalline iodine inventory that had been stockpiled in H2
2020.
The Company produced 108.2 metric tonnes ("MT") of crystalline
iodine from its five operating IOsorb(R) plants in Oklahoma versus
129.7 MT in the same period in 2020. This lower-than-anticipated
figure is largely a result of unforeseen storms and extreme cold in
the central United States during the month of February, which took
production wells offline for approximately two weeks. Additionally,
saltwater disposal network system maintenance has resulted in lower
water than expected at some plants. With weather related production
issues now resolved, Iofina is working with its brine suppliers to
maximize supply to our IOsorb(R) plants. The Company is likely to
achieve H1 production of approximately 250MT, below the 285-305 MT
forecast.
Following a slowdown in H2 2020 given the COVID-19 pandemic and
associated effects on the openness and vitality of the U.S. and
global economy, the iodine market looks set to recover moving
forward with prices steady in Q1 and rising in Q2 2021. Iodine
prices are currently at the $34-37/kg level on the spot market,
similar to the levels seen in the same period last year, and the
Company remains well placed to deliver good margins on its
sales.
The outlook for iodine prices and demand is likely to be
directly related to the rate of the global economic recovery moving
out of this COVID-19 period. In particular, iodine demand for X-ray
contrast agents, heat stabilizers in automotive applications, and
LCD screens, which was significantly reduced last year, is now
recovering rapidly. Additionally, Iofina Chemical had larger than
expected demand for iodine based biocides in the Period.
The Company is also currently evaluating iodine growth locations
and timing, and will prioritise the stability of water supply to
our current and future plants. The next potential expansion will
most likely be implemented around Q4 2021 or Q1 2022.
The Company is planning a webinar for current and potential
investors that will likely take place around the time of its full
year 2020 results announcement, targeted for May 2021, and the
Company will update the market on this in the near future.
Commenting, President and CEO Dr. Tom Becker, stated: "This
quarter, Iofina has seen excellent sales for our crystalline iodine
and specialty chemical products, a testament to the Company's
resilience and ability to capitalise on market recovery as we and
the wider economy emerge from the challenging COVID-19 period.
"Despite seeing lower production this quarter due to factors
outside of our control, we were pleased with the sales figure for
the period and are particularly encouraged to see the strong state
of the iodine market and its recovery.
"Following the Company's debt refinancing in 2020, and our
consistent production diversified across plants and product lines,
Iofina is on track to prudently continue its growth strategy. I
look forward to updating the market further with our FY20 financial
results in May."
Enquiries:
Dr. Tom Becker
CEO & President
Iofina plc
Tel: +1 859 356 8000
Christopher Raggett/Giles Rolls/Tim Harper (corporate
finance)
Tim Redfern (ECM)
finnCap Ltd
Tel: +44 (0)20 7220 0500
Media Contact:
Charles Goodwin/Joe Burgess
Yellow Jersey PR Limited
Tel: +44 (0)7747 788 221
About Iofina:
Iofina plc (AIM: IOF) is a vertically integrated Company that
specialises in the production of Iodine and the manufacturing of
specialty chemical products. As the second largest producer of
iodine in North America, it comprises three USA entities; Iofina
Resources, Iofina Chemical and IofinaEX.
LEI: 213800QDMFYVRJYYTQ84
ISIN: GB00B2QL5C79
Iofina Resources
Iofina Resources develops, builds, owns and operates iodine
extraction plants using Iofina's WET(R) IOsorb(R) technology.
Iofina currently operates five producing IOsorb(R) plants in
Oklahoma and is consistently using technology and innovation to
improve and expand its operations.
Iofina Chemical
Iofina Chemical has manufactured high quality halogen speciality
chemicals derived from raw iodine, as well as non-iodine based
products for over 35 years.
IofinaEX
Iofina's newest subsidiary, IofinaEX, is fully licensed to
process hemp in the state of Kentucky and is currently managing a
hemp seed investment in this market.
www.iofina.com
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